GeoPark completes acquisition of Vaca Muerta blocks in Argentina

BOGOTA - GeoPark Limited (NYSE:GPRK), a Latin American oil and gas operator with impressive gross profit margins of 74% and a current market capitalization of $320 million, announced Thursday it has completed its acquisition from Pluspetrol S.A. of a 100% operated working interest in the Loma Jarillosa Este and Puesto Silva Oeste blocks, located in the Vaca Muerta formation in Neuquén Province, Argentina. According to InvestingPro analysis, the company maintains strong financial health with liquid assets exceeding short-term obligations.

The Government of Neuquén Province issued two decrees formalizing the transfer, representing the final regulatory approvals needed for the transaction. As previously agreed, GeoPark has transferred a 5% working interest in the Puesto Silva Oeste Block to Gas y Petróleo del Neuquén S.A (GyP), which will serve as a strategic partner in developing the asset.

With the closing of the transaction, GeoPark has paid the remaining balance of the purchase price for a total consideration of $115 million, subject to customary price adjustments. The total included a security deposit of $22.7 million and a $92.3 million balance payment. The transaction value represents approximately 36% of GeoPark’s current market capitalization, while the company maintains a healthy current ratio of 2.47x, indicating strong liquidity position to support such strategic investments.

"This closing marks an important milestone for GeoPark as we officially become operators in Vaca Muerta," said Felipe Bayon, Chief Executive Officer of GeoPark, in the press release statement.

The acquisition represents GeoPark’s entry into the black oil window of the Vaca Muerta formation, one of Latin America’s most significant unconventional oil and gas plays. The company, which has operated in Latin America for over 20 years, described the transaction as part of its long-term commitment to Argentina.

The blocks are located in Neuquén Province, a region known for its hydrocarbon resources. The prompt completion of the transaction highlighted collaboration between GeoPark, Pluspetrol, GyP, and the Government of Neuquén Province, according to the company’s announcement. Currently trading below its Fair Value based on InvestingPro analysis, GeoPark offers investors exposure to Latin American energy markets while maintaining a significant 9.25% dividend yield. For detailed insights into GeoPark’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, GeoPark Limited has reported its second-quarter 2025 earnings, which showed a notable miss in earnings per share (EPS) projections but exceeded revenue expectations. The company announced an EPS of -$0.20, which was significantly below the anticipated $0.20, representing a 200% negative surprise. However, GeoPark’s revenue reached $119.8 million, slightly above the forecasted $117 million. In another development, GeoPark has entered into an agreement to acquire two oil blocks in Argentina’s Vaca Muerta formation from Pluspetrol S.A. for $115 million. This acquisition includes a 100% operated working interest in the Loma Jarillosa Este block and a 95% operated interest in the Puesto Silva Oeste block, with a 5% transfer to Gas y Petróleo del Neuquen S.A. The transaction is anticipated to conclude before the end of 2025. These developments are part of GeoPark’s ongoing strategic initiatives.

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